US/CANADA: Molson Coors toasts savings as FY rises
Molson Coors Brewing Company has posted a lift in sales and profits for 2007, having "delivered on the promise" of the merger between Molson and Coors in 2005.
The North American brewer said yesterday (12 February) that net profit in 2007 leapt by 37.7% year-on-year US$497.2m. Sales in the year came in 5.9% up at $6.19bn, despite a slight fall in sales, down to 42.0m barrels from 42.1m.
"We achieved these results while facing a very difficult cost environment and investing substantially in our brands," said company president and CEO Leo Kiely. "Our strategic brands showed robust growth in the fourth quarter and throughout the year, despite challenging competitive and economic conditions.
The US business gained market share and increased operating profit by over 28% in the year, while overcoming "significant" cost challenges. In Canada, the brewer said it gained market share for the first time in six years, while in the UK, strong cost discipline was "successfully imposed in a very difficult trading environment".
"For the third straight year, we have over-delivered on our synergies and other cost savings targets, allowing us to close out our merger synergies programme above our original goal," Kiely continued.
"We are working to complete the proposed MillerCoors US joint venture, which we expect to generate substantial additional earnings and cash flow for Molson Coors over time. The joint venture will enable us to compete even more effectively in an increasingly competitive worldwide market. It represents a huge step forward in our quest to become a top-performing global brewer."
For the full year, Molson Coors achieved merger synergies of $55m and closed out this year's cost saving programme $5m above its original three-year target of $175m. In the first year of the 'Resources for Growth' cost-reduction programme, savings of $91m were delivered, $25m above Molson Coors' first-year goal.
The top ten most visited stories on just-drinks this week included news the world's number one wine group was to reduce its Australian footprint, Coca-Cola has acquired assets in Colombia and Diageo i...
Molson Coors has posted a marked drop in profits for the first half of this year, as one-off charges made their presence felt....
MillerCoors, the new US brewer formed by SABMiller and Molson Coors, has announced it is suspending a new range of Miller Lite beers following a disappointing trial....
Shares in SABMiller fell this morning (31 July) after the brewer said organic lager volumes dipped 1.6% in its first quarter....
Molson Coors Brewing Company has confirmed details of its latest dividend payment....
Coors Brewing Co. has confirmed the transfer of several of its properties in the US to MillerCoors....
Molson Coors has confirmed an addition to its board of directors....
MillerCoors has picked Chicago as the location for its headquarters, with the city pipping Dallas to house the joint venture....
- Spirits - Where does 'Craft' End and 'Mass' Begin?
- Brewers go Crazy over Flavoured Malt “Cocktails”
- What do A-B InBev results mean for SABMiller deal?
- Mike’s Hard Lemonade Could Be a Hard Sell
- Anheuser-Busch InBev's FY Performance by Region
- Diageo "smart bottle" targets consumers at home
- Suntory whiskey seeks to "eclipse" Diageo, Pernod
- Tesco reinstates Dan Jago following suspension
- Diageo adds Dubai to Johnnie Walker skyline series
- Tough US hits Mast-Jagermeister volumes in 2014
- Wine, 2014 and the future
- Spirits and RTDs, 2014 and the future
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report